My alt (sgpt) is 119, liver is slightly fatty & enlarged. age 36, weight 80 kg. have diabetes type 2. what to do now?

Manage it: I trust that other additional causes of elevated transaminases -- hepatitis B and C, Wilson's, hemochromatosis -- have been ruled out. Avoid alcohol and hit the fitness trail really hard. Much of the tendency to type II diabetes / non-alcoholic fatty liver is genetic. Work with what you have and stay physically active -- the payoffs will be great for the future.